DSCR Loan Guides

What Is a DSCR Loan? How Rental Property Loans Qualify on Rent

A DSCR loan is a rental property mortgage that qualifies on the property's rent instead of your personal income. How it works, who it fits, what it costs, and where it falls short.

DSCR Formula: How to Calculate DSCR for a Rental Property

The DSCR formula lenders apply to rental property loans, with three worked examples: a purchase, an interest-only loan, and a property with HOA dues. Plus the commercial NOI version and why they differ.

What Is a Good DSCR? How Lenders Read Each Ratio

A DSCR of 1.25 or higher is good. Here is what lenders do at every band from under 0.75 to over 2.0, how each affects your rate and LTV, and why a ratio that qualifies is not the same as a ratio that makes money.

DSCR Loan Requirements: What Lenders Check and What They Skip

The complete list of DSCR loan requirements: minimum ratio, credit score, down payment, reserves, property types, LLC rules, appraisal and rent documentation, and the prepayment penalty terms to watch.

DSCR Loan Down Payment: How Much You Need and How the Ratio Sets It

DSCR loans need 20 to 25% down, but the real minimum is whatever makes the rent cover the payment. How to calculate the down payment your ratio requires, what pushes it higher, and where the cash can come from.

DSCR Loan vs Conventional Investment Property Loan: Which Costs Less?

DSCR vs conventional loan, compared: qualifying, rates, down payment, property limits, LLC ownership and prepayment penalties, plus when each one wins.

DSCR Below 1.0: Can You Still Get a Loan, and Should You?

DSCR below 1 means rent falls short of the payment. See which lenders still say yes, the real rate and down payment cost, and how to fix the ratio.

Form 1007: The Comparable Rent Schedule and How DSCR Lenders Use It

A comparable rent schedule is Form 1007, the appraisal rent schedule that sets the market rent in your DSCR. What it shows, and what to do if it comes back low.

DSCR Loan Rates: What Sets Your Price and the Spread Over Conventional

DSCR loan rates run above conventional investment loans. See what builds the quote: index, spread, credit score, LTV, cash-out, prepay, and points.

Does DSCR Include Taxes and Insurance? What Counts in the Ratio

Does DSCR include taxes and insurance? Yes, plus principal and HOA dues, using gross rent. See which real costs lenders leave out of the ratio and why.

DSCR Loan Term Options: 30-Year Fixed, ARM, 40-Year, and Balloon

DSCR loan terms compared: 30-year fixed, 5/1 and 7/1 ARMs, 40-year, and short balloon notes, plus what each structure does to your payment and your ratio.

DSCR Loans for Airbnb: How Lenders Count Short-Term Rental Income

Getting a DSCR loan for Airbnb? Lenders count either long-term market rent or nightly revenue after a haircut. See which applies and how to prove it.

DSCR Loan With Bad Credit: Score Tiers, Pricing and Low-Score Options

A DSCR loan with bad credit usually means a 620 floor, with pricing steps at 660, 700, 720 and 740. What a low score costs in rate, LTV and reserves.

What Can DSCR Loans Be Used For? Property Types That Qualify

What can DSCR loans be used for? Single family rentals, condos, 2 to 4 units and some mixed use. How lenders count vacant units and Section 8 rent.

How to Apply for a DSCR Loan: Pre-Approval, Documents, Closing

How to apply for a DSCR loan in five steps: the term sheet and soft credit pull, the documents needed, the appraisal and rent schedule, underwriting and funding.

Small Multifamily: How Lenders Add Up Rent Across Units

How DSCR lenders total rent across a duplex or fourplex, where loan amount minimums and limits bite, and when a blanket loan is the only way to finance cheap doors.

DSCR Loan vs Hard Money: Cost, Speed and the BRRRR Hand-Off

DSCR loan vs hard money: hard money buys and funds the rehab, a DSCR loan holds it long term. See the cost gap, closing speed and the seasoning rules.

DSCR vs DTI: Why a Rental Loan Can Ignore Your Paycheck

DSCR vs DTI explained: DTI tests your paycheck and personal debts, DSCR tests the rent against the payment. See which ratio decides your rental loan.

DSCR Lenders: How to Compare Quotes and Pick One

Compare DSCR lenders without the sponsored lists. The nine terms to check on every quote, how broker, correspondent and direct pricing differ, and the red flags.

DSCR Loan Pros and Cons: What You Gain and What It Costs

DSCR loan pros and cons weighed side by side: what rent-qualified financing gives you, what the rate premium and penalties cost, and when to borrow another way.

DSCR Construction Loan: How New Builds Get Rent-Qualified Financing

A DSCR construction loan is really two loans: a construction or bridge loan to build, then a DSCR refinance at completion. What the lender needs at the end.

DSCR Refinance: Rate-and-Term Rules, Seasoning and Payoffs

A DSCR refinance without cash out follows different seasoning and LTV rules than a cash-out. What lenders check, and when the payoff is not worth it.

DSCR Loan Appraisal: What the Appraiser Reports and What Can Go Wrong

A DSCR loan appraisal sets both your value and your market rent. What the 1004 and rent schedule report, what it costs, and how to fix a low number.

DSCR Loan Closing Costs: What You Pay at the Table

DSCR loan closing costs add 2% to 5% on top of your down payment. See every lender fee, point, reserve and prepaid added up on a $500,000 rental.